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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Cedar Creek Partners 2024 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Cedar Creek Partners)

Primary Source Intelligence • Q3 2024 Letter Analysis

Cedar Creek Partners Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Cedar Creek Partners. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-10%

YTD+4.8%

Annualized+14.1%

Positioning StanceConstructive

Market CapMicroCap

GeographyUS

Digest Analysis

Quick Take

"Portfolio trades at 8x forward earnings with 28% expert market exposure driving current underperformance."

Executive Summary

Cedar Creek Partners declined 0.1% in Q3 2024 but maintained its 18-year track record of outperformance with 14.1% annualized returns since inception. The fund focuses on microcap and over-the-counter stocks, currently trading at attractive valuations of 8x forward earnings and 6.5x earnings net of cash. Expert market exposure comprises 28% of the fund, with all 2024 underperformance attributed to markdowns in these illiquid positions including Propel Media, PD-Rx Pharmaceuticals, and Pacific Coast Oil Trust. Key holdings include PharmChem where Eriksen serves as Chairman and owns 33% of shares, Citizens Bancshares trading at 7x earnings as an overcapitalized bank, and ENDI Corp growing assets under management 10% quarterly. The manager maintains low 3% cash levels and continues adding to Pacific Coast Oil Trust despite complex legal proceedings, believing current pricing offers asymmetric upside across multiple resolution scenarios. Portfolio concentration and patient capital approach target superior risk-adjusted returns versus passive benchmarks.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

High conviction evidenced by concentrated portfolio with named, sized positions including 33% ownership of PharmChem where manager serves as Chairman. Detailed fundamental analysis provided for each holding with specific valuation targets and willingness to add to positions during weakness, particularly Pacific Coast Oil Trust.

Growth Outlook

25%

BearishBullish

Bearish (25%)

Manager expresses mild optimism about the opportunity set, noting attractive valuations across holdings and having more ideas than capital. However, acknowledges current underperformance and expert market challenges without strong bullish market commentary.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

Fund maintains low 3% cash levels and continued adding to Pacific Coast Oil Trust position, showing selective risk appetite. However, no major new positions or aggressive deployment described, suggesting measured approach to current environment.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

Cash levels decreased modestly from 4% to 3% with continued purchases of Pacific Coast Oil Trust units. No major sales executed and no significant new position additions described, representing limited net deployment activity during the quarter.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

Manager indicates willingness to continue selective deployment and expects continued dividend income from holdings. Expresses confidence in Pacific Coast Oil Trust resolution over time but no aggressive deployment plans articulated.

Language Signal

35%

BearishBullish

Bearish (35%)

Language includes positive terms like 'attractive valuations,' 'incredible bargain,' and 'asymmetric upside' but balanced with acknowledgment of underperformance and complex legal issues. Net positive but measured tone throughout.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Manager acknowledges specific risks around expert market exposure and liquidity constraints from SEC Rule 15c2-11, plus complex legal proceedings affecting Pacific Coast Oil Trust. However, risks are presented as manageable and creating opportunity rather than systemic threats.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

Manager explicitly states having more attractive ideas than available capital, suggesting abundant opportunity set. Detailed analysis of multiple undervalued holdings with specific upside targets indicates selective but meaningful opportunities in microcap space.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Manager demonstrates multi-year patience with positions like Propel Media post-failed merger and complex Pacific Coast Oil Trust legal resolution. Emphasizes 18-year track record and willingness to hold through volatility, though some catalyst dependency noted for specific holdings.